Economics

2.The owner-manager of Good Guys Enterprises obtains utility from income(profit) and from having the firm behave in a socially conscious manner, such as making charitable contributions or civic expenditures. Can you set up the problem and derive the optimization conditions if the owner-manager wishes to obtain a specific level of utility at the lowest possible cost? Do these conditions differ from the utility-maximizing conditions?

  1. 👍
  2. 👎
  3. 👁

Respond to this Question

First Name

Your Response

Similar Questions

  1. Economics

    you are hired as the consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit? If the firm is

  2. Economics

    Two firms produce the same good and compete against each other in a Cournot market. The market demand for their product is P = 204 - 4Q, and each firm has a constant marginal cost of $12 per unit. MR1 = 204 - 8q1 - 4q2. Let q1 be

  3. managerial economics

    A firm uses a single plant with costs C= 160 +16Q +.1Q2 and faces the price equation P= 96 – .4Q. a) Find the firm’s profit-maximizing price and quantity. What is the profit? b) The firm’s production manager claims that the

  4. Math

    A souvenir shop sells about 200 coffee mugs each month for 6$ each. The shop owner estimates that for each $0.50 increase in the price, he will sell about 10 fewer coffee mugs per month. a. How much should the owner charge for

  1. Economics

    Determine which of two investment projects a manager should choose if the discount rate of the firm is 20%. The first project promises a profit of $100,000 in each of the next four years, while the second project promises a profit

  2. Economics

    I got a lot of problems with this exercise. I really hope you can help me. Thanks! Samantha Roberts has a job as a pharmacist earning $30.000 per year, and she is deciding whether to take another job as the manager of another

  3. Economics

    7. Suppose there are two possible income distributions in a society of ten people. In the first distribution, nine people have incomes of $30,000 and one person has an income of $10,000. In the second distribution, all ten people

  4. College Math

    Brandywine Homecare, a not for hire business, had revenues of $12 million in 2011. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.5 million. All revenues were collected in cash

  1. Economics

    The Ali Baba Co is the only supplier of a particular type of Oriental carpet. The estimated demand for its carpets is Q= 112,000 – 500P + 5M, where Q= number of carpets, P= price of carpets (dollar per unit), and M= consumers

  2. Algebra

    A business owner opens one store in town A. The equation p(x)=10,000(1.075)^t represents the anticipated profit after t years. The business owner opens a store in town B six months later and predicts the profit from that store to

  3. finance (net income)

    If a firm has a break-even point of 20,000 units and the contribution margin on the firm's single product is $3.00 per unit and fixed costs are $60,000, what will the firm's net income be at sales of 30,000 units? A. $90,000 B.

  4. Algebra 2 honor

    a souvenir shop sells about 300 coffee mugs per month for $7.50 each. the shop owner estimates that for each $0.75 increase in the price, he will sell about 15 fewer coffee mugs per month. a. how much should the owner change for

You can view more similar questions or ask a new question.